Project Overview
An 81 MW cogeneration power plant in Pedricktown, New Jersey was originally built in 1992 by Atlantic Energy and Columbia Gas. The plant was later acquired by Vestolit/Mexichem to support nearby chemical plant operations.
By 2023, portions of the cogeneration facility had become outdated, and the owner decided to dismantle the plant while retaining the HRSG components. Phoenix Equipment made a cash offer for the idled assets and took responsibility for resale, preservation, dismantlement, and scrap disposition within the project scope.
The approximately $1.5 million project ran from June through November 2023.
The Challenge
Vestolit/Mexichem wanted to recover value from the idled power generation assets while avoiding the time, cost, and effort of separately managing equipment sales, dismantlement, and scrap disposal.
The work also required a selective approach. The HRSG components were to remain, while the rest of the plant had to be evaluated for sale, preservation, or scrap recovery.
Gas Turbine Redeployment & Selective Dismantlement
Phoenix identified a qualified buyer for the gas turbine portion of the plant, allowing that equipment to be redeployed for continued use.
Other reusable components were dismantled and preserved for future resale through the secondary market, while obsolete or lower-value material was removed through demolition and scrap recovery. Phoenix coordinated the plant acquisition, buyer identification, dismantlement, preservation, and final disposition under one project while leaving the retained HRSG components in place.
Project Highlights
- Client: Vestolit / Mexichem
- Location: Pedricktown, New Jersey
- Facility: 81 MW Cogeneration Power Plant
- Original Construction: 1992
- Original Developers: Atlantic Energy and Columbia Gas
- Phoenix Scope: Plant Acquisition, Buyer Identification, Equipment Relocation, Selective Dismantlement, Asset Preservation and Scrap Recovery
- Major Asset Redeployed: Gas Turbine Portion of Plant
- Equipment Preserved: Reusable Components Retained for Future Resale
- Excluded Scope: HRSG Components
- Project Timeframe: June 2023 – November 2023
- Project Value: Approximately $1.5 Million
- Owner Outcome: Cash Value Recovered / Idled Assets Disposed of Through a Single Phoenix-Led Project
- Buyer Benefit: Acquired Well-Maintained Equipment Below New-Build Cost and Avoided New Manufacturing Lead Time
Recovering Value From an Idled Cogeneration Plant
Phoenix gave Vestolit/Mexichem a single route to monetize and clear the idled cogeneration assets. The gas turbine was redeployed, additional reusable equipment was preserved for resale, and lower-value material was removed through dismantlement and scrap recovery.